SOUTHAMPTON, PA — Environmental Tectonics Corporation (OTC Pink: ETCC) this week reported robust financial results for the 2025 fiscal second quarter and first half, showcasing a significant upturn compared to the previous year. The company experienced a 56% surge in sales during the second quarter, reaching $14.1 million, up from $9.0 million in the same period last year. This increase was primarily driven by substantial growth in the company’s Aircrew Training Systems (ATS), Advanced Disaster Management Simulator (ADMS), and Sterilizer Systems business units.
In the second quarter, ETC’s net income rose to $1.7 million, or $0.09 per diluted share, a remarkable improvement from a net loss of $0.4 million in the prior year. The positive shift in net income is largely attributed to higher sales and an improved gross profit margin, which rose to 29.8% from 25.4% last year.
For the first half of the fiscal year, ETC’s sales increased by 65.3%, totaling $27.6 million, compared to $16.7 million in the same period of 2024. This growth led to a net income of $3.1 million, a notable turnaround from a $1.5 million loss last year. The gross profit for the first half also saw a significant boost, climbing to $8.7 million from $4.1 million, with a gross margin increase to 31.6%.
Operating expenses were reduced slightly in the second quarter, down by 6.1% to $2.2 million, which contributed to an operating margin improvement from a negative 0.8% to a positive 14.0%. Despite a slight increase in operating expenses for the first half, the company maintained a strong operating margin improvement to 12.8%.
ETC ended the second quarter with a backlog of $109 million, positioning the company for continued success. CEO Robert L. Laurent, Jr. expressed satisfaction with the company’s performance, highlighting the substantial increase in sales and net income as key achievements. “We are pleased with the overall 56% increase in 2025 fiscal second quarter sales vs. prior year, as well our improvements in gross margin, operating margin and our $2.1 million increase in net income,” Laurent noted.
ETC’s strategic financial management, including reduced interest expenses and prudent cash flow management, has set a solid foundation for ongoing growth. The company remains focused on leveraging its strengths in key market segments to sustain its positive momentum in the coming months.
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